Licence Application Decision

Transcription

1 Licence Application Decision Limousine New Special Authorization Application # Applicant Silver Grizzly Transportation Ltd. Trade Name (s) Principals Address Current Authorization (s) Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Board Decision Silver Grizzly Transportation BRYANT, Michelle Nicole 154 Gull Cres, Prince Rupert BC V8J 4G5 None New Special Authorization (Reference: Section 26 of the Passenger Transportation Act) New limousine service in Prince Rupert, Terrace, and Kitimat areas with 1 vehicle. Rates (Section 24 of the Passenger Transportation Act) Hourly and Point to Point Rates. June 17, 2015 Papa Mobile Ts msyen Transport Ltd. Kalum Kabs Ltd. The special authorization is approved. Terms and conditions of licence are approved in part as set out in this decision. Rates sought by the applicant are approved as set out in this decision. Decision Date July 28, 2015 Panel Chair Roger Leclerc I. Introduction This is an application from Silver Grizzly Transportation Ltd. The applicant is applying for a new passenger transportation licence with a Special Authorization (SA). Silver Grizzly Transportation Ltd. s proposed maximum fleet size is 1 limousine which can accommodate a driver and not less than 6 and not more than 11 passengers. The proposed originating area is any point in Prince Rupert, Terrace, and Kitimat and the proposed destination area is Prince Rupert, Terrace, and Kitimat. Page 1 Passenger Transportation Board Limo Decision

2 II. Background Silver Grizzly Transportation Ltd. was incorporated on April 28, 2015 and presently has 1 director. Supporting documents include: PDV vehicle proposal Point to Point Rates Financial information Hourly Charter Rates Business Plan Disclosure Forms Public Need indicators The disclosure forms of Unlawful Activity & Bankruptcy and Passenger Transportation Ownership signed by the applicants indicate no discrepancies. III. Relevant Legislation: Division 3 of the Passenger Transportation Act (the Act ) applies to this application. The Act requires the Registrar of Passenger Transportation to forward applications for Special Authorization licences to the Passenger Transportation Board (Board). Section 28(1) of the Act says that the Board may approve the application, if the Board considers that: (a) there is a public need for the service the applicant proposed to provide under any special authorization. (b) the applicant is a fit and proper person to provide that service and is capable of providing that service, and (c) the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia. I will consider each of these points in making my decision. IV. Rationale and Submissions (a) Applicant s Rationale Silver Grizzly Transportation Ltd. would be the only executive transportation service that would be available in the Prince Rupert area. Silver Grizzly Transportation Ltd. is targeting Page 2 Limo Decision Passenger Transportation Board

3 the corporate business traveler. The applicant states that there are 10 major projects that are currently in various phases of development and do not include the major business that are currently in operation and that Prince Rupert is Canada s Northern Gateway for Asia- North American trade. (b) Submissions & Applicant s Response Papa Mobile Ts msyen Transport Ltd. Papa Mobile Ts msyen Transport Ltd. identifies that it operates a family transportation business in Prince Rupert, with 2 taxi & charter vans. Although it operates 2 vehicles there has not been enough business for their second vehicle. Business has declined substantially. It is challenging to make a profit to cover fuel and vehicle upkeep. Kalum Kabs Ltd. Kalum Kabs Ltd. strongly opposes the application based on 2 factors: there is no demonstrated public need and it will not promote sound economic conditions in the passenger transportation business. Kalum Kabs Ltd. has experienced a 70% decrease in use of similar vehicles in the past 6 months. At this point the 6 11 passenger vehicles that are licensed by Kalum Kabs are not utilized on a regular basis. The vehicles take only a few trips per week and one is a contract trip that occurs twice a month. The recent downturn in business is a result of Chevron and other LNG proponents slowing work or leaving the area. Applicant s Response The applicant identifies that its on-line survey and letters of support from big business in Prince Rupert indicate a need for a specialized luxury service to the business client that is presently not being offered. In regards to the downturn of the businesses of the 2 taxi businesses in Terrace and Prince Rupert, the applicant states that with good marketing and the right contacts, which they have, they can generate enough business to sustain one vehicle. Page 3 Limo Decision Passenger Transportation Board

4 The applicant states that its business offers a different type of transportation service that is not currently available in the area. The Board gives more weight to submissions that back up general claims with facts or details. I have considered the submissions and the responses in my review of this application. V. Reasons for the Board s Decision (a) Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants should supply information that is factual and objective to demonstrate public need. It should demonstrate that there are people who would use the service. Applicants should explain why they are applying for a specific number of vehicles. The Board looks for a reasonable connection between the number and types of vehicles requested and public need. The applicant has provided statistical information from the Prince Rupert Airport: Terminal Customer Service Analysis (Altitude Consulting in 2011) identified that 52.4% of all travelers coming through Prince Rupert Airport were traveling on business, and 75.9% of out of town visitors stay between 1 to 4 days. The applicant has provided financial information (Projected Cash Flow Statements for a 3 year period) indicating an ambitious annual growth which may be hard to achieve. The applicant submitted 5 letters of support and an online Survey (Survey Monkey) with 11 businesses participating. The letters of support attest to a need for a specialized luxury service for the business client that is presently not being offered and support the applicant s application. Most of these businesses that provided letters of support are not big users of such a service but would promote it. The on-line survey participants identified that 81% of them may likely use the business if it was available today, but the survey did not ask the question on how often they would use the limo service. Page 4 Limo Decision Passenger Transportation Board

5 Findings With respect to the request for one vehicle, I do not put much weight on the letters of support. I put some weight on the on-line survey which identifies business that participated in the on-line survey have made some commitment to utilization of a new limousine service if the applicant was successful in obtaining a PTB licence. I also put some weight on the evidence of economic development opportunities that are happening in Prince Rupert and the potential opportunities in the north west of BC as a source of public need for specialized luxury service for the business client. The applicant has provided sufficient evidence for a limousine service based in Prince Rupert but has not demonstrated sufficient evidence to indicate a public need for additional capacity in Terrace or Kitimat which already have limousine service providers based in their communities. In reviewing the applicant package in its entirety there is adequate evidence to demonstrate a public need for one limousine vehicle for Prince Rupert. (b) Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? The Board looks at fitness in two parts: (i) is the applicant a fit and proper person to provide the proposed service; and (ii) is the applicant capable of providing that service? The principal of applicant has post-secondary education, including a Master s degree. Currently she is a corporate affairs manager at a marine terminal. The applicant will manage the business and employ a primary driver. The applicant is new to the passenger transportation business but has experience and contacts in the corporate world and understands how a business operates. The applicant has provided financial information (Projected Cash Flow Statements for a 3 year period) indicating an ambitious annual growth. Although the annual growth is ambitious, information provided indicates the potential for a viable business. Page 5 Limo Decision Passenger Transportation Board

6 There is nothing in the file to indicate that the applicant is not a fit and proper person. I find that it is capable of providing the services for which it applied. (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? There are many markets for limousines. Some limousine companies may serve the wedding or special event market. Others may serve corporations. Still others may offer a specialty services. A healthy, competitive limousine industry provides the public with a range of service options while enabling efficient operators to run a successful business. The Board discourages competition that could unduly harm existing service providers. There were 2 submitters to this application. The submitters (2 taxi companies) were concerned about this business being in direct competition with them in a tight market in which they claim there has not been enough business for their vehicles and they find it challenging to make a profit. The applicant is going to provide a high end limousine service that is different from the taxi businesses and would not be in direct competition. The market should be able to absorb 1 additional limousine vehicle that will be based in Prince Rupert. I find that approving 1 additional vehicle would promote sound economic conditions in the industry. VI. Rates The rates are approved as set out in this decision. They are within the industry norms. VII. Conclusion For the reasons above, this application is approved in part as set out in this decision. I establish the activation requirements and the terms and conditions of licence that are attached to this decision as Appendix I. I establish the rates that are attached to this decision as Appendix II. These form an integral part of the decision. Page 6 Limo Decision Passenger Transportation Board

7 Silver Grizzly Transportation Ltd. Appendix I Licence Required to Operate Vehicles Approval of application may expire Notice to Registrar Special Authorization The Registrar of Passenger Transportation must issue the applicant a licence before the applicant may implement the amendments approved in this decision. 1. The applicant must activate the vehicle within 6 months of the date of this decision. 2. If the applicant does not meet the requirements set out in 1 above, this Special Authorization expires. 3. The Passenger Transportation Board may vary the requirements set out in 1 above, if circumstances warrant it. 4. If an applicant needs more time to activate its vehicle, then the applicant must make a request to the Board before the end of the 6 month activation period. (Note: activate means that the applicant has submitted the documents required to obtain a Special Authorization Vehicle Identifier to the Registrar of Passenger Transportation.) The Registrar must not, without direction from the Board, issue the applicant a licence or any Special Authorization Vehicle Identifiers if the applicant has not activated the vehicle within 6 months of the date of this decision. (Note: activated means that the applicant has submitted to the Registrar of Passenger Transportation the documents required to obtain a Special Authorization Vehicle Identifier.) Passenger Directed Vehicle (PDV) Terms & Conditions Maximum Fleet Size: Vehicle Capacity (LV): 1 vehicle A driver and not less than 6 and not more than 11 passengers Service 1: Originating Area: Destination Area: Return Trips: Transportation of passengers may only originate from any point in Prince Rupert area along the highway 16 corridor to but not including Terrace. Transportation of passengers may terminate at any point in Prince Rupert, Terrace and Kitimat. The same passengers may only be returned from where their trip terminates in the destination area to any point in the originating area if the return trip is arranged by the time the originating trip terminates. Transfer of a licence: This special authorization may not be assigned or transferred except with the approval of the Board pursuant to section 30 of the Passenger Transportation Act. Page 7 Limo Decision Passenger Transportation Board

8 Silver Grizzly Transportation Ltd. Appendix II Rates: The applicant seeks Board approval of the following rates. Hourly Rates* (charter) Current Proposed For first hour or fraction (Mid-Size Limousine) $90 For each extra hour (Mid-Size Limousine) $90 * Taxes are not included 1 hour minimum charge for any use of a vehicle for less than 1 hour. General: Trip Description* (charter) Rate Prince Rupert to Northwest Regional Airport or $225 Reverse * Taxes are not included Other rates and rules may be set out in the rates document received from the applicant. Page 8 Limo Decision Passenger Transportation Board